Rheinmetall Group Corporate Presentation May 2021 Rheinmetall Group Mobility and security form the DNA of the business model RHEINMETALL GROUP INTEGRATED TECHNOLOGY GROUP FOR SECURITY AND MOBILITY Automotive Our heart beats for your engine Defence Force protection is our mission Tier 1 supplier System house for land based operations High-tech products for global markets Leading provider of innovative solutions model Business Gaining powertrain neutrality Internationalization focused on home markets Megatrend mobility Increasing demand for security Growing demand for clean mobility Geostrategical powershifts Global LV production with growth Constantly changing conflict situations driver Market Market Increased regulation Rising defence/security budgets Rheinmetall AG - Corporate Presentation May 2021 2 Rheinmetall Group Highlights Group performance indicator Strategy roadmap Grow sales ~8% op. Organic International around 8% margin RHEINMETALL growth expansion Targeted 2-4% 30-35% GROUP Leading by Targeted Cash on sales payout ratio innovations acquisitions AUTOMOTIVE Our heart beats for your engine 2020 DEFENCE Force protection is our mission Op. margin €2,151m 37% Sales 63% €3,723m Op. margin 1.5% €33m Oper. Result €414m 11.1% *€426m Order backlog €12,924m 10,613 47% Headcount** 53% 12,344 * Short-term; **Headcount at capacities; Rheinmetall AG - Corporate Presentation May 2021 3 Rheinmetall Group Financial overview - Growth in all relevant KPI Sales, operating result and operating margin Operating FCF and operating FCF to Sales In €m In €m / in % 4,7% 5,0% 6.500 6.255 12 400 5 6.148 314 3,7% 10 4 6.000 5.896 5.875 300 276 2-4% 5.602 8 217 3 OFCF 200 161 5.500 5.183 8,0% 8,1% TARGET 7,3% 6 2,9% 2 6,3% 6,8% 100 4 29 1 5,5% 491 505 426 500 287 353 400 0 2 0,6% 0 -0,6% 0 0 -100 -35 -1 2015 2016 2017 2018 2019 2020 Op. Margin Sales Op. Result 2015 2016 2017 2018 2019 2020 oFCF oFCF/Sales Earnings and dividend per share Net financial debt In € / in % In €m 12 32,4% 34,2% 40 Cash 30,9% 29,6% 30,9% Payout Ratio 10 28,4% 30-35% 300 7,77 30 of EPS 8 7,10 200 5,88 6 4,69 5,24 20 230 3,88 100 4 2,40 1,45 1,70 2,10 2,00 10 0 19 4 2 1,10 -81 -30 -52 0 0 -100 2015 2016 2017 2018 2019 2020 Debt 2015 2016 2017 2018 2019 2020 Payout Ratio underlying EPS DPS Net debt Rheinmetall AG - Corporate Presentation May 2021 4 Rheinmetall Automotive Products per division MECHATRONICS HARDPARTS AFTERMARKET PUMP TECHNOLOGY SMALL BORE PISTONS HARDPARTS AUTOMOTOVE EMISSION SYSTEMS BEARINGS MECHATRONICS SOLENOID VALVES LARGE BORE PISTONS COMMERCIAL DIESEL SYSTEMS CASTINGS ACTUATORS Rheinmetall AG - Corporate Presentation May 2021 5 Rheinmetall Defence Products per division WEAPON AND ELECTRONIC VEHICLE AMMUNITION SOLUTIONS SYSTEMS HX-FAMILY MID & LARGE CALIBER AMMO INTEGRATED ELECTRONIC SYSTEMS TACTICAL VEHICLES MID & LARGE CALIBER WEAPONS AIR DEFENCE & RADAR SYSTEMS LOGISTIC VEHICLES Medium wheeled PROTECTION SYSTEMS TECHNICAL PUBLICATIONS Medium tracked - ACTIVE Heavy tracked - PASSIVE - SOFTKILL Rheinmetall AG - Corporate Presentation May 2021 6 One Rheinmetall Realization of growth in changing market conditions Positioning as integrated technology group for Mobility and Security ONE Realization of growth potentials in changing market environments Leveraging strengths by bundling and channeling our expertise and RHEINMETALL competencies, e.g. different technologies Change perception and increase attractiveness as an employer One Rheinmetall One Rheinmetall One Rheinmetall Phase I Phase II Phase III Initiatives addressing culture Focus on technologies Commercialization and cooperation 2016-2018 2018 ff. starting 2021 Rheinmetall AG - Corporate Presentation May 2021 7 STRATEGY UPDATE Taking Rheinmetall to the next level Rheinmetall AG - Corporate Presentation May 2021 8 Strategy update Management sets clear strategic objectives 1 Reduce Automotive exposure 2 Minimum profitability level requirement 3 Continuous portfolio management Rheinmetall AG - Corporate Presentation May 2021 9 Strategy update Transformation process initiated Realignment Integration of of existing business Automotive holding • Disposal process of the piston business • Right-size the structure to support the business • Regrouping of business activities • Eliminate redundant functions on • Focused approach with five divisions Group and Automotive holding level Rheinmetall AG - Corporate Presentation May 2021 10 Strategy update The new corporate structure 2020 2021 Rheinmetall Group RheinmetallRheinmetall Group Group Holding Holding Automotive Weapon and Electronic Vehicle Sensors and Materials Defence Pistons Holding Ammunition Solutions Systems Actuators and Trade Non-core business Weapon & Ammunition Mechatronics Sensors and Actuators Materials and Trade • Pumps • Aftermarket Electronic Solutions Hardparts • Actuators • Bearings • Air Emission Systems Vehicle Systems Aftermarket • Solenoid Valves • Castings • Commercial Diesel (50:50 Joint Venture) Systems Rheinmetall AG - Corporate Presentation May 2021 11 Strategy update Strong measures to improve the Automotive situation Pistons decided non-core Realignment of the core business Superb engineering and business production capabilities form our innovation culture Find a better owner for Right-sizing the organization Leveraging of technologies the piston business to new applications Divestment process Preparation for Accelerate transformation started transformation Rheinmetall AG - Corporate Presentation May 2021 12 Strategy update Sensors and Actuators: Focus on profitable growth IHS Sensors and Historic performance (2015-2019) LV production* Actuators In million units Sales In € billion • Sales growth of 1.3% CAGR vs. flat global LV volumes growth* • +5.4% CAGR +10% CAGR 9.3% average operating margin 95 ~2.0 Regulation drives the business… 73 23 0.7 95g CO 6 ~1.2 • Tighter thresholds 2 0.1 • New emission regulation EU 7 67 72 1.1 1.3 • Expansion to new regions Asia 2020 2025FC 2020e 2025p …but technology offers opportunities beyond automotive ICE Alternative Propulsion *IHS 12/2020 Rheinmetall AG - Corporate Presentation May 2021 13 Strategy update Sensors and Actuators: Three pillars of growth Innovative solutions for Growth in alternative Diversify into clean mobility powertrains (AP) new applications Tighter Regulation of fuel fumes Electrified Mobility Sustainability and Performance Electronic Vapor Pump (EVAP) Thermal Management Thermal Management Server cooling 5G Base station & antenna COOLANT COOLANT PROPORTIONAL- PUMP VALVE COOLANT VALVE Air Management Air sanification equipment Fuel Tank Isolation Valve (FTIV) H2 Products H2 Applications H2 Recirculation FUEL-CELL CONTROL ELECTRICAL Stationary fuel cell Blower VALVE CATHODE VALVE Sales potential in 2025 Up to € 300 m Up to € 500 m Up to € 200 m Illustrative Rheinmetall AG - Corporate Presentation May 2021 14 Strategy update Sensors and Actuators: China JV clearly outperfom market IHS LV production* China JV (100% pro forma sales ) In million units; CAGR 2020-25 In € million; CAGR 2020-25 Strong profitable growth of at equity BEV Hybrid consolidated sales ICE +4.7% 29.4 ~400 • Introduction of fuel fume regulation in +20% 18% China 23.4 5% 3% 13% • Tightening truck regulation in India and China ~160 92% 69% • Electrification of the powertrain 2020 2025 2020e 2025p *IHS 12/2020 Rheinmetall AG - Corporate Presentation May 2021 15 Strategy update Materials and Trade: Well positioned to capture opportunities Aftermarket Bearings Castings (Joint Ventures) Solid profitability Shift to non-ICE applications Technology leadership 5% CAGR 7% CAGR 7% CAGR ~440 ~300 ~1,100 ~340 ~200 ~800 2020e 2025p 2020e 2025p 2020e 2025p . Flexible casting technology . Regional expansion . Accelerate diversification . Benefit from global lightweight . Increase truck exposure . Focus on industrials trend . Sustainable margin >9% (100% pro forma sales) Rheinmetall AG - Corporate Presentation May 2021 16 Strategy update 2021 2022 Defence budgets demonstrate robustness despite Covid 2023 Germany Australia UK* Hungary USA Stable Growing Growing Growing Stable Threat scenario • Russia and China defence Tender • Large vehicle programmes with persists spending increased at 10% ongoing temporary delays, but no cancellations CAGR** during the last decade • Modernization programmes remain key • European defence emancipation priority becomes more popular • Positive outlook for tender pipeline All data public defence budgets for the years 2021-2023, Hungary based on Jane’s data Rheinmetall AG - Corporate Presentation May 2021 17 *UK Budget 2020 increased by € 19 bn over 4 years modeled to internal assumptions **Sipri: Defence budgets 2009 to 2019 Strategy update Competitive vehicles portfolio offers huge potential Infantry Main Wheeled Trucks fighting vehicles battle tanks vehicles • Puma • Leopard • 4x4 HU JV • HX-Family • Lynx • Challenger • 6x6 New Fox • Future trucks • MGCS • 8x8 Boxer ~€15 ̶ 40 bn ~€5 bn ~€5 ̶ 6 bn ~€7 ̶ 8 bn 10 years‘ order potential of ~€ 30 to ~€ 60 bn Rheinmetall AG - Corporate Presentation May 2021 18 Strategy update Hungary is a catalyst for our Lynx pipeline USA US Army Bradley Eastern replacement Europe ~4000 vehicles Australia ~ € 40 bn Slovakia and Tender: 2021-2023 Slovenia Czech Land 400 Phase III Potential start of ~450 vehicles Start of Tender: production: 2028 2024/25 ~200 vehicles ~ € 4-5 bn Strong team with Hungary Combined value: Raytheon and Textron ~ € 2 bn Decision 2022 ~ € 1.5-2 bn Decision H1 2021 ~220 Lynx KF41 ~ € 3.1 bn Order intake Q4’20